Victor Ezeja
The naira recorded a significant decline in value as it exchanged ₦1,670.65 per dollar at the close of trading on Monday, 28th October.
According to data released by the Nigerian Autonomous Foreign Exchange Market (NAFEM), this shows ₦70.65 loss or 4.42 per cent when compared to ₦1,600 it exchanged against the dollar on Friday, last week. The local currency had managed to end last week with a slight margin of gain (0.07 per cent or ₦1.20).
Join our WhatsApp ChannelAccording to the FMDQ data, the naira traded between ₦1,677.00/$ and ₦1,585.67/$ on Monday at the Importers and Exporters (I&E) window.
The naira also recorded a significant drop in value on Monday, at the parallel market also known as black market as the exchange rate rose to ₦1,755 per dollar. This is N15 loss compared to ₦1,740 recorded on Friday.
On a week-on-week analysis, the naira depreciated by ₦30 at the back market when compared to ₦1,725 recorded on Monday, last week (21 October).
READ ALSO: Naira Falls: Nigerians Struggle As Exchange Rate Hits N1,740/$1
The data on FMDQ also indicated that dollar supply to the foreign exchange market plunged significantly as FX turnover transaction decreased by 71.51 per cent from $284.93 million on Friday, 25 October to $81.17 million on Monday 28 October 2024.
Analysts attribute the naira fall to shortage of dollar supply to the FX market given the pressure on demand.
Victor Ezeja is a passionate journalist with seven years of experience writing on economy, politics and energy. He holds a Master's degree in Mass Communication.
